Hot Chili Limited · ASX:HCH
Hot Chili — Latin America Downunder 2017
24 slides from Hot Chili's conference presentation, May 17, 2017
Slide 1: Hot Chili Reloaded
For personal use only Hot Chili Reloaded Productora, Chile Latin America Downunder Perth, Australia May 2017
Slide 2: Disclaimer
Disclaimer For personal use only This Presentation is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Pr
Slide 3: Corporate Summary and Board of Directors
Corporate Summary Board of Directors For personal use only Murray Black Non Exec Chairman Christian Easterday Managing Director Michael Anderson Non Exec Director Allan Trench Non Exec Director Roberto de Andraca Adriasola Non Exec Director Capital Structure Issued Shares 543.1M Unlisted Options 11.
Slide 4: Bold Move Begins New Growth Phase
Bold Move Begins New Growth Phase For personal use only ▪ Drilling underway to test large porphyry copper targets at Productora ▪ All drilling being undertaken by Blue Spec Sondajes Chile (associated with Hot Chili's Chairman Murray Black) at their own risk and at no cost to Hot Chili ▪ Reconnaissan
Slide 5: A$13 Million Funding Package & Drilling Underway
A$13 Million Funding Package & Drilling Underway For personal use only ▪ Funding via an unsecured Convertible Note (Notes) structure led by Sprott and supported by major shareholders CAP (CMP’s parent company) and Taurus ▪ Use of Funds- Repayment of US$6.5 Million Loan Facility and exploration worki
Slide 6: Hot Chili Poised to Re-rate
Hot Chili Poised to Re-rate ▪ Hot Chili highly leveraged to copper price rally and new discovery phase For personal use only ▪ Aiming to elevate Productora to a top tier copper development project Alice porphyry Large IP Porphyry First 0.48 Mt Cu Resource 0.92 Mt Cu discovery Centres Detected Resour
Slide 7: Copper Price Forecast to Recover Toward the End of the Decade
Copper Price Forecast to Recover Toward the End of the Decade For personal use only ▪ Copper price rebound forecast to gather pace over coming years Global stocks of refined copper and annual average copper price Spot Copper Price Rebounding Now Source – Wood Mackenzie presentation “Copper- market f
Slide 8: Mine Production to Peak Around 2020 Without New Major Projects
Mine Production to Peak Around 2020 Without New Major Projects For personal use only ▪ New large copper projects required to meet projected future supply deficit ▪ Electric car market growth forecast to add further copper demand pressure Mine production (forecasts after 5% disruption allowance) Sour
Slide 9: Mining Majors Positioning in Copper
Mining Majors Positioning in Copper For personal use only Case Example ▪ Current focus on greenfield copper discoveries in Americas and Australia ▪ Cascabel is a recent potential Tier 1 copper porphyry discovery in Ecuador ▪ Annual budget of >US$60M FY16 to FY18 ▪ Newcrest and BHPBilliton competing
Slide 10: Chile - The Home of Copper
Chile- The Home of Copper For personal use only ▪ Home to some of the world’s largest porphyry copper mines ▪ Accounting for 30% of global copper production ▪ Premier global mining jurisdiction Location of porphyry copper deposits across the globe Productora (Northern Chile Coastal Cordillera) Sourc
Slide 11: Productora - Chile's next Coastal Copper Mine in the Making
Productora- Chile’s next Coastal Copper Mine in the Making For personal use only ▪ Location- Low altitude, coastal range- Not in the high Andes (~800m elevation, ~40km from coast) ▪ Infrastructure Advantage- with access rights secured to establish key infrastructure (Water, Power) ▪ PFS Complete- 10
Slide 12: Tier 1 Porphyry Copper Deposit? The Evidence Revealed
Tier 1 Porphyry Copper Deposit? The Evidence Revealed For personal use only 1. Right location for Tier 1 copper deposit (130km spacing) 2. Discovery of Alice porphyry copper resource adjacent to planned central pit 3. Large scale surface alteration and geophysical porphyry footprint (several large s
Slide 13: Giant Copper Camp Setting in Chile
Major NW Trasverse Fault Giant Copper Camp Fault Porphyry Collahuasi (81Mt) Settings in Chile Cu deposit Chuquicamata (>130Mt) For personal use only 22° City/Town Sierra Gorda (3.8Mt,1.8Moz) ▪ Chilean Tier 1 - +5Mt copper metal endowment Centinela (13.9Mt,13.4Moz) Antucoya (3.9Mt) ANTOFAGASTA ▪ +5Mt
Slide 14: Living Next Door to Alice
Living Next Door to Alice Advanced argrillic surface footprint in relation to detected porphyry centres For personal use only Soil Sulphur +0.2% Cu ▪ Major 6km x 4km porphyry lithocap (advanced argillic alteration) lying immediately next to Productora Main Zone IP3 IP4 ▪ Sulphur endowment can be use
Slide 15: Productora has Potential to Get Much Bigger
Productora has Potential to Get Much Bigger! For personal use only ▪ 3D modelling of near-surface IP porphyry targets indicate Productora has potential to grow its current resource base by several multiples Productora Copper Project (Resources, Pit Designs and IP Chargeability Porphyry Targets) Cent
Slide 16: First Results Confirm Alice Extensions
First Results Confirm Alice Extensions ▪ First drill results confirm depth extension potential of the Alice porphyry copper For personal use only resource ▪ 64m grading 0.5% Copper, 0.1g/t Gold and 185ppm Molybdenum from 200m down- hole, hole was abandoned and ends in mineralisation ▪ Drill result i
Slide 17: Porphyry Copper Transforms Scale
Porphyry Copper Transforms Scale For personal use only Location of reconnaissance RC drill holes in relation to key exploration datasets at Productora ▪ Methodical and state of art porphyry exploration techniques applied ▪ Reconnaissance RC well advanced across multiple locations ▪ Diamond drilling
Slide 18: Opportunity Knocks Twice
Opportunity Knocks Twice For personal use only View looking north across Productora 1. HCH share price is cheap compared to peers and very leveraged to copper price rally and exploration success 2. Funding allows repayment of all debt and boosts cash reserves. 3. Large-scale (1.5Mt Copper and 1M oz
Slide 19: Hot Chili Limited
For personal use only Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au
Slide 20: Qualifying Statements
Qualifying Statements For personal use only Mineral Resource and Ore Reserve Confirmation The information in this presentation that relates to Mineral Resources and Ore Reserve estimates on the Productora copper project was previously reported in the ASX announcement “Hot Chili Delivers PFS and Near
Slide 21: Productora JORC Compliant Mineral Resource
Productora JORC Compliant Mineral Resource Productora Project Higher Grade Resource, March 2016 For personal use only Grade Contained Metal Tonnage Cu Au Mo Copper Gold Molybdenum Deposit Classification (Mt) (%) (g/t) (ppm) (tonnes) (ounces) (tonnes) Indicated 166.8 0.50 0.11 151 841,000 572,000 25,
Slide 22: Competent Person's Statement
Competent Person’s Statement For personal use only Exploration Results Exploration information in this Presentation is based upon work undertaken by Mr Christian Easterday, the Managing Director and a full- time employee of Hot Chili Limited whom is a Member of the Australasian Institute of Geoscien
Slide 23: Appendix 1: Chilean porphyry copper deposit comparison
Cadia Australia 3260 0.25 0.41 8.4 43.0 4.5 26 8.4 43 >9 >8.4 >52 Source: http://www.newcrest.com.au/media/resource_reserves/3a._NCM_150216_Resources_and_Reserves_Statement_(Market_Release).pdf Source: http://www.newcrest.com.au/our-business/operations/cadia-nsw/ Candelari Chile 726.7 0.67 0.16 4.8
Slide 24: Hot Chili Limited
For personal use only Hot Chili Limited ACN 130 955 725 ASX: HCH Level 1, 768 Canning Highway, Applecross, Western Australia 6153 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au